Analysing ageing periods can help you monitor how much money your customers owe you, and identify when money is due to come into your business. You can use this information for a number of purposes:

Identify the customers who regularly pay late. You might then send out reminder letters or adjust their credit limits accordingly.

See which customers whose payments are most overdue, or which ones owe you the most.

Check on your cash flow. If a lot of money is overdue now, you might end up with cash flow problems later. By monitoring the ageing of amounts, you can identify potential cash flow problems and try to fix them.